Imagine that the government statisticians who calculate the inflation rate have been updating the basic basket of goods once every 10 years, but now they decide to update it every five years. How will this change affect the amount of substitution bias and quality/new goods bias?

Q: If the unemployment rate is 6% before a rise in government purchases, and if a rise in government…

A: Expansionary fiscal policy is a financial tool of central government where by the government…

Q: Turkey produces pigs, and all of them are exported to Germany. If the price of pigs decreases, for…

A: Comparison of a basket(fixed) of goods/services and its prices, to the same basket in a year base,…

Q: Suppose that the price of good 1 increases. The amount of additional income a consumer requires to…

A: When the price of the good increases, the consumer would definitely shift to the other good but he…

Q: ylor just received a 3% pay increase but the current rate of inflation is 4%. We can say that…

A: Nominal wage is the wage received in terms of money. Real wage measures the amount of goods and…

Q: Govelment make O How decisions Puichasing Elabolate does when of the it items? Comes to placess.

A: Government spending includes, government expenditure on consumption, investment and transfer of…

Q: iF there is 3.C percent frictional usemplayment 4% Stre unemploy ment and the Actual Rale of…

A: Given  Frictional unemployment = 3.5% Structural unemployment =4% Actual rate of unemployment = 6.5%…

Q: na particular economy, the price index was 120 in 2012 and 130 in 2013. Which of the following…

A: A price index is a numerical representation that gauges the proportional alteration in the prices of…

Q: If the Consumer Price Index changes from 118 in the year 2009 to 127 in the year 2011, the average…

A: Measurement of consumer goods and services, such as transportation, food, and medical care, is known…

Q: Pls help to solve below homwork, if you need any more details pls reply. In Zimbabwe the rate of…

A: Definition: In financial matters, expansion alludes to a concurrent moderate expansion in all costs…

Q: It has been noticed that the recovery from the COVID-19 recession has been slower for low-wage…

A: Provided information: The covid-19 pandemic has more or less affected all markets at a global level…

Q: 2019 and in 2020, consumers in Dexter consumed only books and pens. The prices and quantities for…

A: A metric that  measures the average change in the prices of a basket of commodities paid by the…

Q: how do i do 2.5

A: When the Potential GDP exceeds the real GDP (here, 15.4T > 15.3T), it results in a deflationary…

Q: Explain the main reasons that caused a fall of the oil price started in 2015.   b. Is the…

A: Reasons for fall in oil prices: 1.  Less elastic supply curve of oil:  It means that with the change…

Q: Which of the following is not included in macro environment? a. Competitors b. Economnic O b. C.…

A: Macro settings are sometimes outside the retailer's control, and they are usually on a broader…

Q: 2000 2005 2010 2015 2020 95.4 107 116.5 126.6 137 The above table shows a history of the Consumer…

A: Here, the given table shows the CPI in different years according to which price of shoes in 2020 is…

Q: Which of the following is not a commonly used price index? Select one: O a. Wholesale price index O…

A: Price index (PI) is a measure of how prices fluctuate over a while, or in other words, a measure of…

Q: The following table pertains to an economy in which the typical consumer's basket consists of 15…

A: A basket of goods represents the spending by consumers and helps on tracking changes in the prices…

Q: Use the highlighted info above to answer each question below, Round appropriately to the context.

A: The change in the cost of an average market basket of consumer goods and services is measured by a…

Q: Explain, in terms of income and substitution effects, why increased wages could lead to less work,…

A: The substitution effect: When a product's cost rises, consumers are more likely to buy its…

Q: country M has always have an inflation of roughly 2% for many years alrdy, however due to a shock of…

A: Inflation Inflation is considered as an increase in the level of price and the cost of living in a…

Q: The labor-force participation rate measures the percentage of the Selectati respunsul corect O labor…

A: Unemployment is the situation where people does not find a job even when they are willing and able…

Q: When capital recovery (CR) is calculated, the annual operating maintenance (AOC) is: Select one: O a…

A: Disclaimer- “Since you have asked multiple question, we will solve the first question for you as per…

Q: Back to Assignment Attempts 3. Adjusting for inflation Keep the Highest/2 Consider golfers who led…

A: Present value is the sum of money that should be invested to accomplish a particular future goal.…

Q: A. the tendency for the CPI to overstate price changes. O B. the tendency for government officials…

A: CPI is measured using a fixed basket of goods.

Q: To measure inflation, economists usually refer to the consumer price index. Which of these…

A: CPI measures the change in value of a fixed basket of goods, over time. So, if price of the goods…

Q: Which of the following statements are correct? Select one or more: O a. To find GDP at constant…

A: The statement which is true among the options mentioned in the question is :  We know that in order…

Q: Suppose you're in charge of economic policy. Today's unemployment rate is 3.6%, and you estimate…

A: The natural rate of unemployment is regarded as the full employment. There is presence of frictional…

Q: When the price level the inflation rate A. rises rapidly; increases O B. falls; is zero O C. rises…

A: The inflation rate is the percentage change in the average level of prices  over a period of time.

Q: Inflation refers to a(n) ---- in the overall Lütfen birini seçin: O A. increase; price level O B.…

A: Economics: It relates to the study of decision-making by humans in scarcity.

Q: The salary of a consumer increased from ¢90, 000 to ¢110,000, which represents his salary for 2021…

A: Given: Salary in 2021=90000 Salary in 2022=110000

Q: In the economy there has been an increase in the labor force participation rate. We can expect the…

A: The Labour force participation rate calculates the number of people who enters the labour force out…

Q: Select one or more: O a. Households smooth their income to match their volatile consumption. O b.…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: To determineThe impact of increased production without increased inflation.

A: The aggregate demand curve shows the amount of goods and services that all consumers in the economy…

Q: will inflation change more with steep or flat AS curve

A: Inflation is nothing but the rise in general price level in an economy.

Q: Calculate the change in real wage

A: Real wage = Nominal wage - Inflation rate So, % change in real wage = % change in nominal wage - %…

Q: 2. Which of these is NOT a factor in determining dass in America? OA. Education B. Occupation OC.…

A: A social class is a set of concepts in social science and political philosophy that focus on forms…

Q: DERIVED THE UNEMPLOYMENT RATE

A: The unemployment rate is calculated by dividing the number of unemployed people by the total labor…

Q: None

A: Option a) 115: This option is correct because Peter Howitt's theory suggests that if inflation drops…

Q: How does money of stable value influence the volume oftrade? When the inflation rate is volatile,…

A: Inflation refers to the increase in the general price level from one period to another. Inflation…

Q: The quality change bias is most likely to put The quality change bias is most likely to put into the…

A: CPI or the Consumer Price Index helps measure the average change in price of a fixed basket of goods…

Q: Darshan needs to borrow money to become a nurse practitioner. Suppose that compensation of nurse…

A: It can be defined as the securities which are issued by the government of the country U to raise…